Sprint says its network is behind, offers “double the data” of rivals

While slower and less reliable, Sprint network can handle new 20GB family plans.

Sprint announced new family plans today that provide 20GB of shared data for $100, calling it "double the high-speed data at a lower price than AT&T and Verizon Wireless."

New pricing options have been expected since last week when newly appointed Sprint CEO Marcelo Claure told employees that "When you have a great network, you don’t have to compete on price," according to Light Reading. But, "when your network is behind, unfortunately you have to compete on value and price."

AT&T and Verizon have the fastest and most reliable cellular networks in the US, according to a nationwide test conducted in late 2013. Sprint's network was the slowest among the four major carriers, but it ranked third in reliability, ahead of T-Mobile.

Still, the company apparently has enough capacity to offer more data, with the new plans being more about boosting customers' data allotments than lowering the amount Sprint charges. "The focus is on giving away more data for the same price, rather than lowering prices per se, and with all the capacity available on the Sprint network, Sprint can afford to do so," wrote wireless analyst Jan Dawson, founder of Jackdaw Research. "Most customers will not come anywhere near using 20GB in a month even across four lines, so there’s little risk involved for Sprint."

Sprint is also offering to pay off customers' early termination fees when they switch, for a limited time. This "will be slightly riskier" than offering 20GB data plans "and will also have a negative short-term financial impact for Sprint, as it did at T-Mobile when it began paying ETFs for customers," Dawson wrote.

AT&T in February started offering 10GB family plans (with unlimited talk and text) that cost $130 a month for two people, $145 for three, and another $15 for each additional line up to a maximum of 10. Verizon Wireless offered similar terms shortly after. T-Mobile offers $100-a-month family plans with 10GB of high-speed data for four people (with speeds throttled thereafter).

Sprint says its offer is simpler and better. "It really doesn’t matter if your family is 3, 5, or 10 people, you will get at least 20GB of shared data and your monthly charge will be $100," the company's announcement said. The new plans will be available beginning Friday. Voice calls and text messages will be unlimited.

Sprint also has a couple of time-limited offers to sweeten the deal. One will provide an extra 2GB of data per line. Second is the ETF offer. For customers who switch from other carriers between August 22 and Sept. 30, "Sprint will buy out their families’ contracts with a Visa Prepaid Card worth up to $350," the company said.